The pressure on the Ghana cedi continued as the local currency lost 3.95% against the US dollar in October 2024, taking its year-to-date depreciation to nearly 29%.
It is coming after the Governor of the Bank of Ghana, Dr. Ermest Addison’s statement that the cedi will soon post gains against the American greenback.
Last week, the local unit also lost 1.50% in value against the British pound, and 0.69% against the euro. Despite the Bank of Ghana’s effort to stabilise the currency by auctioning US$20 million to the Bulk Oil Distributors (BDCs) and selling US$81.47 million during the 7-day forward auction, these interventions did little to address the heightened demand.
The cedi began the week on November 4, 2024, selling at GH¢17.10 to one American dollar on the retail market.
Last week, the Bank of Ghana signaled it would resume daily intervention on the spot market in a bid to address the outstanding corporate foreign exchange demand.
Analysts expect the cedi to benefit from this initiative, providing it with some stability in the coming weeks.
However, this week the cedi is expected to continue depreciating due to persistent demand pressures coupled with potential US dollar strengthening following the upcoming U.S. presidential election and the Federal Reserve’s interest rate decision. In 2024, the local currency depreciated by about 15.57%.
